8572 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Notice 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5078–N–01] 

Notice of Funding Availability (NOFA): 

Section 202 Demonstration PreDevelopment Grant Program 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice of Funding Availability. 

Overview Information 

A. Federal Agency Name: Department 

of Housing and Urban Development, 

Office of Housing. 

B. Funding Opportunity Title: Section 

202 Demonstration Pre-Development 

Grant Program. 

C. Announcement Type: Initial 

announcement. 

D. Funding Opportunity Number: The 

OMB approval number for this NOFA is 

2502–0267. The Federal Register 

number is FR–5078–N–01. 

E. Catalog of Federal Domestic 

Assistance (CFDA) Number(s): 14.157, 

Section 202 Demonstration PreDevelopment Grant Program. 

F. Dates: The application deadline 

date is Wednesday, March 28, 2007. All 

applications must be received and 

validated by Grants.gov no later than 

11:59:59 p.m. eastern time on the 

application deadline date. Refer to the 

General Section of the Fiscal Year (FY) 

2006 SuperNOFA (71 FR 3382), 

published January 20, 2006; the NOFA 

for HUD’s discretionary programs (71 

FR 11712), published March 8, 2006; 

and Section IV of this program NOFA 

for further information about 

application, submission, and timely 

receipt requirements. 

G. Additional Overview Content 

Information: Applicants must be 

registered to apply online at Grants.gov. 

In addition to reviewing this program 

section, private nonprofit organizations 

and nonprofit consumer cooperatives 

interested in applying for funding under 

this program should carefully review 

the General Section of the FY 2006 

SuperNOFA (71 FR 3382), published 

January 20, 2006; the NOFA for HUD’s 

discretionary programs (71 FR 11712), 

published March 8, 2006; the technical 

corrections to the FY 2006 SuperNOFA 

(71 FR 25208), published April 28, 

2006; the notice entitled ‘‘Notice of 

HUD’s Fiscal Year (FY) 2006 Notice of 

Funding Availability, Policy 

Requirements and General Section to 

SuperNOFA for HUD’s Discretionary 

Grant Programs; Correction’’ (71 FR 

44038), published August 3, 2006; the 

notice entitled ‘‘Notice of HUD’s Fiscal 

Year (FY) 2006, Notice of Funding 

Availability, Policy Requirements and 

General Section to SuperNOFA for 

HUD’s Discretionary Grant Programs; 

Additional Information Regarding 

Applicant Registration’’ (71 FR 45063), 

published August 8, 2006; and the 

information detailed in this program 

NOFA, which covers the registration, 

submission, timely receipt, and 

additional requirements for this funding 

opportunity. 

Full Text of Announcement 

I. Funding Opportunity Description 

A. Program Description 

The purpose of this Demonstration 

Pre-Development Grant Program is to 

assist Sponsors of projects that receive 

Fund Reservation Awards pursuant to 

the FY 2006 SuperNOFA for the Section 

202 Supportive Housing for the Elderly 

Program by providing predevelopment 

grant funding for architectural and 

engineering work, site control, and other 

planning-related expenses that are 

eligible for funding under the Section 

202 Supportive Housing for the Elderly 

Program. Subsequent to providing 

predevelopment grant funding to the 

selected applicants, HUD will assess the 

impact of the availability of such 

funding on the ability of project 

Sponsors to expedite the development 

processing of projects from Section 202 

Fund Reservation to Initial Closing 

within 18 months. 

HUD is aware of the complexities of 

developing Section 202 projects and 

understands that a lack of 

predevelopment funding may be a 

contributing factor in many instances 

where project Sponsors are not able to 

move their approved projects from Fund 

Reservation award to Initial Closing 

within the required 18-month time 

frame. Funding under this program is 

not intended to duplicate Section 202 

Capital Advance funding, but rather to 

provide a source of funding for 

predevelopment costs that would 

otherwise not be reimbursable until 

Initial Closing or would be payable from 

eligible funding resources secured 

outside of Section 202 Capital Advance 

funding. 

B. Authority 

The Section 202 Demonstration PreDevelopment Grant Program is 

authorized by the Transportation, 

Treasury, Housing and Urban 

Development, The Judiciary, The 

District of Columbia, and Independent 

Agencies Appropriations Act, 2006 

(Pub. L. 109–115, approved November 

30, 2005). 

II. Award Information 

A. Funding Available 

The Transportation, Treasury, 

Housing and Urban Development, The 

Judiciary, The District of Columbia, and 

Independent Agencies Appropriations 

Act, 2006 (Pub. L. 109–115, approved 

November 30, 2005), authorized 

approximately $20 million for 

predevelopment grants to private 

nonprofit organizations and consumer 

cooperatives in connection with the 

development of housing under the 

Section 202 Supportive Housing for the 

Elderly Program. The total dollar 

amount that is available under this 

Demonstration Pre-Development Grant 

Program is approximately $19.8 million, 

due to a one percent rescission pursuant 

to the Department of Defense, 

Emergency Supplemental 

Appropriations to Address Hurricanes 

in the Gulf of Mexico, and Pandemic 

Influenza Act, 2006 (Pub. L. 109–148, 

approved December 30, 2005). 

B. Funding Process 

HUD will only make offers to fully 

fund as many applications as possible 

from the $19.8 million allocated for 

Sponsors that receive Section 202 Fund 

Reservations pursuant to the FY 2006 

SuperNOFA. Applicants selected for 

funding under the FY 2006 Section 202 

Supportive Housing for the Elderly 

NOFA are not guaranteed funding under 

this Demonstration Pre-Development 

Grant Program. 

C. Maximum Grant Award 

The maximum grant amount per 

single application is $400,000. However, 

no more than $800,000 may be awarded 

to a single entity or its affiliated 

organizations. The amount of funding 

requested must be within the maximum 

grant award amounts or the application 

will not receive funding consideration. 

D. Reduction of Requested Grant 

Amount 

HUD may make an award in an 

amount less than requested, if: 

1. HUD determines that any of the 

proposed predevelopment activities are 

ineligible for funding under the Section 

202 Supportive Housing for the Elderly 

Program; 

2. HUD determines that an eligible 

applicant has not been able to provide 

sufficient evidence to support the 

proposed cost of an eligible 

predevelopment item or activity; 

3. HUD determines that a reduced 

grant would prevent duplicative federal 

funding; or 

4. HUD determines that proposed 

costs for predevelopment activities are 


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not based on comparable costs for 

eligible items and activities in the 

applicant’s community. HUD field office 

staff will review proposed costs in 

accordance with customary and 

reasonable costs for such items within 

the geographical jurisdiction of the 

respective Multifamily Hub and/or 

Multifamily Program Center Office. If 

requested by HUD, eligible applicants 

must provide supportable evidence of 

comparable costs for proposed 

activities. 

E. Term of Funded Activities 

The grant term is 18 months from the 

date of the Section 202 Supportive 

Housing for the Elderly Agreement 

Letter to Initial Closing. Funds not 

expended by the end of the grant term 

are subject to recapture and/or 

repayment if expended on ineligible 

activities. Failure to complete the 

development processing of the Section 

202 project by the end of the grant term 

may result in grant termination, grant 

reduction, or other action deemed 

appropriate by HUD. HUD may use past 

performance in making future funding 

decisions. 

III. Eligibility Information 

A. Eligible Applicants 

All private nonprofit organizations 

and nonprofit consumer cooperatives 

that submitted an application for 

funding consideration under the FY 

2006 SuperNOFA for the Section 202 

Supportive Housing for the Elderly 

Program are eligible to apply for funding 

under this Demonstration PreDevelopment Grant Program. (Please 

refer to the Section 202 program NOFA 

(71 FR 12009), published March 8, 2006, 

for a discussion on the eligibility criteria 

for the Section 202 program.) However, 

funding awards under this 

Demonstration Pre-Development Grant 

Program will be restricted to those 

applicants that are selected for Fund 

Reservation Awards under the FY 2006 

SuperNOFA for the Section 202 

Supportive Housing for the Elderly 

Program. Funding under this 

Demonstration Pre-Development Grant 

Program will not be ‘‘fair shared’’ to 

each HUD office. Ineligible applicants 

under this program include: 

1. Applicants that failed to submit a 

request for Fund Reservation under the 

FY 2006 Section 202 program NOFA; 

2. Applications from eligible 

applicants that do not receive a Fund 

Reservation Award under the FY 2006 

SuperNOFA for the Section 202 

program; 

3. Applications from applicants that 

are ineligible under the Section 202 

program, including public bodies and 

instrumentalities of public bodies; and 

4. Applicants submitting proposals 

involving mixed-financing for 

additional units. 

B. Cost Sharing or Matching 

No match required. 

C. Other 

1. Requirement and Procedures. To 

receive and administer funding under 

this Demonstration Pre-Development 

Grant Program, applicants must fully 

satisfy the eligibility requirements for 

participation in the Section 202 

Supportive Housing for the Elderly 

Program and comply with the following: 

a. Statutory and Regulatory 

Requirements. You must comply with 

all statutory, regulatory, threshold, and 

public policy requirements listed in the 

General Section of the FY 2006 

SuperNOFA (71 FR 3382), published 

January 20, 2006. 

b. Allowable Use of Funds. PreDevelopment Grant Program funds may 

be used to cover the cost of 

predevelopment activities relating to the 

development of supportive housing for 

the elderly under the Section 202 

program as described in Section IV(E)(1) 

(‘‘Eligible Activities’’). However, before 

a grantee can enter into a contract for 

professional services, the entity must 

receive approval under the form HUD–

2530 clearance process. Such entities 

include, but are not limited to, housing 

consultants (including those instances 

where eligible Sponsors proposed to 

provide such services), general 

contractors, and management agents. 

c. Organizational Costs. Eligible 

organizational expenses and/or costs are 

limited to those incurred in connection 

with the organization of an Owner 

entity, pursuant to the requirements of 

the Section 202 Supportive Housing for 

the Elderly Program. 

d. Site Control. Applicants are 

required to provide evidence of site 

control, consistent with the 

requirements of the Section 202 

program, as a condition to being funded 

under the FY 2006 Section 202 NOFA. 

Applicants who receive funding awards 

under this Pre-Development Grant 

Program NOFA may utilize this funding 

to extend site control in accordance 

with the site control requirements under 

the Section 202 Supportive Housing for 

the Elderly Program. See the FY 2006 

Section 202 program NOFA (71 FR 

12009), published March 8, 2006, for 

further discussion. 

e. Phase I and Phase II Environmental 

Site Assessments (ESA). The 

requirements for Phase I and II ESAs are 

the same as those that apply to the 

Section 202 Supportive Housing for the 

Elderly Program and are contained in 

the FY 2006 Section 202 program NOFA 

and the Notice entitled, ‘‘Notice of 

HUD’s Fiscal Year (FY) 2006 Notice of 

Funding Availability, Policy 

Requirements and General Section to 

SuperNOFA for HUD’s Discretionary 

Grant Programs; Correction’’ (71 FR 

44038), published August 3, 2006. 

f. False Statements. See the General 

Section of the FY 2006 SuperNOFA. 

2. Program-Related Threshold 

Requirements. In addition to the 

threshold requirements in the General 

Section of the FY 2006 SuperNOFA, 

applicants must adhere to all programspecific threshold requirements as 

detailed in this Pre-Development Grant 

Program NOFA. HUD will consider an 

application non-responsive to this 

NOFA and will not accept it for 

processing if the applicant: 

a. is determined to be ineligible 

(Please refer to Section III(A) of this 

NOFA for a more detailed discussion on 

ineligible applicants); 

b. requested more than the maximum 

grant amount; 

c. is granted a waiver to submit a 

paper application, but fails to submit 

the required original and four copies; or 

d. failed to submit the threshold 

requirements as identified by the 

asterisk (*) in Section IV(B) of this PreDevelopment Grant Program NOFA by 

the deadline date. 

IV. Application and Submission 

Information 

A. Addresses To Request Application 

Package 

All information needed for the 

preparation and submission of this 

application is included in this PreDevelopment Grant Program NOFA and 

the General Section of the FY 2006 

SuperNOFA (71 FR 3382), published 

January 20, 2006. Copies of the General 

Section, this Pre-Development Grant 

Program NOFA, and needed forms are 

found in the instructions and 

application downloads, which is on the 

Grants.gov Web site at http:// 

www.Grants.gov. If you have difficulty 

accessing the information, you may call 

the Grants.gov Support desk toll-free at 

(800) 518–GRANTS or e-mail your 

questions to support@grants.gov. The 

Help Desk staff will assist you in 

accessing the information. 

Your application must be transmitted 

electronically using www.Grants.gov 

unless you request and receive a waiver 

of the requirement for electronic 

application submittal. See the General 

Section for further information and 

instructions pertaining to electronic 


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application submission and waiver 

request requirements. 

For applicants receiving a waiver to 

submit a paper application, an original 

and four copies of the completed 

application package must be received by 

the appropriate local HUD office on or 

before the deadline date. See http:// 

www.hud.gov/offices/adm/grants/ 

fundsavail.cfm (select ‘‘Important 

Information Related to the SuperNOFA’’

and then select ‘‘Field Offices’’) for a 

complete listing of the Multifamily Hub 

Offices and Multifamily Program 

Centers. 

B. Content and Form of Application 

Submission 

You should ensure that your 

application is complete before 

transmitting it to the following Web site: 

http://www.grants.gov and, in cases 

where a waiver of electronic submission 

requirement is granted, an original and 

four copies must be submitted to the 

appropriate HUD office. Upon receipt of 

the application by HUD staff, HUD will 

screen all applications to determine if 

there are any curable deficiencies. See 

Section V(B)(2) of this Pre-Development 

Grant Program NOFA for further 

discussion. 

Applicants may submit more than one 

application to a single field office. 

However, no more than one application 

may be submitted per project. All 

applicable documents must have an 

original signature. Each application 

must propose a separate project and the 

proposed development must be located 

within the jurisdiction of the 

appropriate field office. To be eligible 

for review, all applications must contain 

the required exhibits that include form 

SF–424, form HUD–2880, and the 

narrative discussions. Forms needed for 

the application may be obtained from 

http://www.grants.gov. Threshold items 

are identified by an asterisk (*). Failure 

to include threshold items in your 

initial application submission will 

render your application non-responsive 

and that application will not be 

considered for funding by HUD. 

Applications must contain the required 

exhibits listed below: 

1. Cover Letter. A brief narrative 

detailing the project’s name and HUD 

project number and the name(s), 

address(es), contact person name(s), and 

telephone number(s) of the Sponsor(s). 

The letter must also detail the total grant 

amount being requested under this 

Program NOFA. 

2. Standard Form 424—Application 

for Federal Assistance. 

3. * Narrative Demonstrating Need for 

Predevelopment Funding. This exhibit 

requires applicants to submit form 

HUD–2880, ‘‘Applicant/Recipient 

Disclosure/Update Report,’’ a disclosure 

of assistance from other governmental 

sources received in connection with the 

project. Applicants must also submit a 

brief narrative describing the financial 

circumstances that resulted in the need 

to apply for funding assistance with 

predevelopment activities and how the 

lack of such assistance has impacted the 

organization’s previous or current 

development efforts. 

4. * Proposed Predevelopment 

Activities and Budget. This exhibit 

requires applicants to submit a 

spreadsheet that specifically identifies 

the proposed activity(ies) and their 

anticipated cost. The recommended 

format is as follows: 

Column 1—Clearly identify each 

eligible predevelopment activity being 

proposed by the applicant. 

Column 2—Identify the anticipated 

cost for each activity. 

The spreadsheet must identify the 

total predevelopment funding assistance 

being proposed in the application. 

5. * Project Development Schedule. 

This Exhibit should include a detailed 

development schedule that identifies 

the predevelopment activities being 

proposed, their projected start and 

completion dates, the projected 

completion date for all predevelopment 

planning activities, and a brief narrative 

describing the applicant’s plan for 

monitoring this schedule of activities 

and addressing potential delays. All 

projected development schedules must 

clearly demonstrate the applicant’s 

ability to move its approved FY 2006 

Section 202 elderly housing project 

from Fund Reservation to Initial Closing 

within 18 months of grant approval and 

must provide a statement addressing 

how access to predevelopment funding 

will assist the applicant in moving its 

FY 2006 Section 202 elderly housing 

project to Initial Closing within 18 

months of Fund Reservation approval. 

The completion of the Logic Model 

(form HUD–96010) will assist you in 

responding to this exhibit. 

6. Logic Model (HUD–96010). The 

Logic Model is representative of this 

Section 202 Demonstration PreDevelopment Grant Program proposal 

and serves as the ‘‘executive summary’’

for this grant request. Applicants must 

ensure that its logic model accurately 

represents the purpose of the funding 

request and the expected impact on the 

development process. 

7. Facsimile Transmittal Cover Page 

(HUD–96011). This form must be used 

as part of the electronic application to 

transmit third-party documents and 

other information as described in the 

General Section of the SuperNOFA (if 

applicable). 

8. Acknowledgment of Application 

Receipt (HUD–2993). This form is not 

required for applications submitted 

electronically. 

9. Client Comments and Suggestions 

(HUD–2994). Submitting this form is 

optional. 

If changes have been made to any of 

the forms that were submitted under the 

FY 2006 Section 202 NOFA, HUD 

requires that the updated form(s) be 

resubmitted under this Demonstration 

Pre-Development Grant Program NOFA. 

C. Submission Dates and Times 

Your application must be received 

and validated electronically by 

Grants.gov no later than 11:59:59 p.m. 

eastern time by the application deadline 

date, unless a waiver of the electronic 

delivery process has been approved by 

HUD. Please refer to the General Section 

of the FY 2006 SuperNOFA for 

instructions on applying for a waiver. If 

a waiver is granted, HUD must receive 

an original and four copies of your 

application on or before the deadline 

date. You must comply with the mailing 

and timely receipt instructions in the 

General Section of the FY 2006 

SuperNOFA. 

D. Intergovernmental Review 

This funding opportunity is subject to 

Executive Order (EO) 12372, 

‘‘Intergovernmental Review of Federal 

Programs.’’ You must contact your 

state’s Single Point of Contact (SPOC) to 

find out about and comply with the 

state’s process under EO 12372. The 

names and addresses of the SPOCs are 

listed on the Office of Management and 

Budget’s home page at http:// 

www.whitehouse.gov/omb/grants/ 

spoc.html. If required by the state, the 

submission to the state needs to occur 

no later than the application deadline 

date. It is recommended that you 

provide the state with sufficient time to 

review the application. Therefore, it is 

important that you consult with the 

SPOC for state review time frames and 

take that into account when submitting 

the application. 

E. Funding Restrictions 

1. Eligible Activities. Section 202 

Demonstration Pre-Development Grant 

Program funds must be used exclusively 

to facilitate planning, design, and 

predevelopment activities for projects 

funded under the FY 2006 SuperNOFA 

for the Section 202 Supportive Housing 

for the Elderly Program. Such activities 

include architectural and engineering 

work, site control planning, and other 

planning activities related to the 


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development of a multifamily housing 

project funded under the FY 2006 

Section 202 Supportive Housing for the 

Elderly Program. Grantees may not use 

funds for land acquisition, leasing, new 

construction, or for property 

rehabilitation, alteration, demolition, or 

disposition. 

a. All expenses related to eligible 

activities must be limited to those actual 

costs that are incurred prior to initial 

closing and be otherwise eligible 

activities under the Section 202 

program. Activities that are eligible for 

funding include the following: 

(1) Appraisals. The applicant’s cost 

for obtaining an appraisal to establish 

the fair market value of the proposed 

site, completed by a qualified and 

licensed appraiser. 

(2) Architect Services. The design fees 

charged by licensed architectural/ 

engineering firms for architectural 

services regarding the applicant’s 

project. 

(3) Engineering Services. Actual cost 

of boundary survey, topographic survey, 

soil borings and tests. 

(4) Environmental Site Assessment. 

Actual cost incurred for the 

environmental site assessment, i.e., 

Phase I and Phase II. 

(5) Consultant Services. Up to 20 

percent of the total amount of the 

contract between the applicant and its 

consultant for services related to the 

development and submission of an 

approvable Section 202 Fund 

Reservation application. 

(6) Cost Analysis. The cost of the 

contract between the applicant and a 

professional with experience in cost 

estimation, for an independent cost 

estimate needed to determine the 

viability of a proposed project as 

required for Firm commitment 

processing under the Section 202 

program. 

(7) Legal Fees. The cost for legal 

services and title binder fees. 

(8) Site Control. The applicant’s cost 

for extending the time for site control of 

the original site, including option costs 

necessary to extend option agreement 

for up to 18 months, to the closing target 

date. The proceeds of this grant may not 

be used for site acquisition. 

(9) Market Studies. The applicant’s 

cost for a study completed by a 

qualified, independent, third-party 

market research firm for purposes of 

examining the need for and verifying 

the marketability of the proposed 

project. 

(10) Organizational Expenses. The 

actual cost related to the creation of an 

owner entity for the proposed project, 

pursuant to Section 202 program 

regulations. 

(11) Impact Fees. One-time fees local 

governments charge Sponsor/Owners to 

offset the impact such housing will have 

on the community. (Typical impact fees 

are traffic, solid waste, sewer, water, 

electric, gas, police protection, and fire 

protection.) 

(12) Relocation expenses. If the 

project involves displacement of site 

occupants who are eligible for 

relocation assistance, indicate the total 

estimated cost. 

(13) Building permits and variance 

fees. The cost of obtaining building 

permits and variances. 

2. Ineligible Activities. No proposed 

activity that is deemed to be ineligible 

will be funded from the Demonstration 

Pre-Development Grant Program funds. 

a. Section 202 Demonstration PreDevelopment Grant Program funds may 

not be used for the following: 

(1) To acquire sites or other real 

property; or to fund organizational 

overhead and/or operating expenses, 

staff salaries, or any planning activity 

that is otherwise ineligible for assistance 

under the Section 202 Supportive 

Housing for the Elderly Program. 

(2) To meet Minimum Capital 

Investment (MCI) requirements for the 

Section 202 program. 

(3) Performance/Payment Bonds (dual 

obligee). 

(4) Taxes and interest. 

(5) Bond premium, builder’s risk, 

liability insurance, fidelity bond 

insurance, performance bond insurance, 

cash bond, and insurance premiums. 

b. In the event that funding awarded 

under this program is utilized for 

activities or purposes that have not been 

approved by HUD, the Department will 

seek repayment or any other available 

remedies. 

3. Applicants submitting proposals 

involving mixed-financing for 

additional units are not eligible to be 

considered for predevelopment funding 

under this NOFA. 

F. Other Submission Requirements 

Application Submission and Receipt 

Procedures. This section provides the 

application submission and receipt 

instructions for HUD program 

applications. Refer to the General 

Section for specific procedures for 

additional information on application 

submission requirements. 

1. Electronic Submission. 

Demonstration Pre-Development Grant 

Program applicants must submit their 

applications electronically through 

http://www.grants.gov/Apply, unless a 

waiver is granted. 

a. The http://www.grants.gov/Apply 

website offers a simple, unified 

application process. Submission 

requires an authenticated signature and 

registration at Grants.gov. There are five 

steps to complete the registration 

process, and information is available at 

the www.grants.gov Web site. 

Applicants should carefully read HUD’s 

Federal Register notice on early 

registration (70 FR 73332), published 

December 9, 2005, or page 3390 of the 

General Section, published January 20, 

2006. 

b. In addition, applicants should 

carefully read HUD’s Federal Register 

notice entitled, ‘‘Notice of HUD’s Fiscal 

Year (FY) 2006, Notice of Funding 

Availability, Policy Requirements and 

General Section to SuperNOFA for 

HUD’s Discretionary Grant Programs; 

Additional Information Regarding 

Applicant Registration’’ (71 FR 45063), 

published August 8, 2006. The notice 

alerts applicants of a recent change in 

the registration process with the Central 

Contractor Registry (CCR). As of August 

1, 2006, CCR registrants cannot enter or 

modify their name and address 

information, because it will be prepopulated using Dun and Bradstreet 

(D&B) Data Universal Numbering 

System (DUNS) record data. During a 

new registration or when updating a 

record, CCR registrants will have a 

choice to accept or reject the 

information provided from D&B. If the 

CCR registrant agrees with the D&Bsupplied information, the D&B data will 

be accepted into the CCR registrant’s 

record. If the CCR registrant disagrees 

with the D&B-supplied information, the 

registrant will need to go to the D&B 

Web site, http://fedgov.dnb.com/ 

webform, to modify the information 

contained in the D&B record before 

proceeding with its CCR registration. 

See further details in the abovereferenced Federal Register notice. 

2. Instructions. Instructions on how to 

submit an electronic application to HUD 

via grants.gov/Apply are contained in 

section IV(F) of the General Section. 

Also, Grants.gov has a full set of 

instructions on how to apply for funds 

on its Web site at http:// 

www.grants.gov/applicants/ 

apply_for_grants.jsp. In addition, HUD 

has published a Desktop User Guide for 

Submitting Electronic Grant 

Applications, which is available on 

HUD’s Web site at http://www.hud.gov/ 

offices/adm/grants/deskguide/ 

deskguide.cfm. The guide contains 

screen shots and detailed instructions. 

Applicants are encouraged to read all 

sources of instructions carefully. 

3. Waiver of Electronic Submission 

Requirement. HUD will accept 

electronic applications only if submitted 

through www.grants.gov, unless the 

applicant has received a waiver. If you 


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apply for and receive a waiver from the 

electronic submission requirement, your 

application (original and four copies), 

must be received by the deadline by the 

Director of the appropriate local HUD 

Multifamily Hub office that has 

jurisdiction over the housing 

development identified in your 

application. If submitting a paper 

application, please note the office hours 

of the office where you are submitting 

your application. For your use in 

determining the appropriate HUD 

Multifamily Hub Office to which you 

must submit your application, see 

HUD’s Web site at http://www.hud.gov/ 

offices/adm/grants/fundsavail.cfm for a 

listing of local HUD offices (select 

‘‘Important Information Related to the 

SuperNOFA’’ and then select ‘‘Field 

Offices’’). The HUD Program Centers are 

under each Hub. If you send your 

application to the wrong Hub Office, or 

if it is received after hours on the 

deadline date, it will be rejected. 

Therefore, if you are uncertain which 

Hub Office to submit your application 

to, you are encouraged to contact the 

local HUD office that is closest to your 

project’s location to ascertain the 

office’s jurisdiction and hours and to 

ensure that you submit your application 

to the correct local HUD Multifamily 

Hub Office at a time when the office is 

open. Paper applications must be 

received in the appropriate Hub Office 

by 11:59:59 p.m. eastern time on the 

application deadline date. HUD will no 

longer allow a 15-day grace period for 

receipt of applications postmarked on or 

before the application deadline date. 

4. Proof of Timely Submission. 

Applicants must submit their 

applications to www.grants.gov in time 

for receipt and validation at Grants.gov 

by 11:59:59 p.m. eastern time on the 

application deadline date. Validation 

can take 24 to 48 hours, so applicants 

should submit with ample time for the 

process to be completed. Applicants are 

also advised to submit 72 hours in 

advance of the deadline so that they 

have sufficient time to correct any 

deficiencies that would prevent the 

acceptance of the application by 

Grants.gov. (Refer to the General Section 

for specific procedures regarding proof 

of timely submission of applications.) 

5. Address for Submitting 

Applications. Applications must be 

submitted electronically through the 

www.grants.gov Web site, unless the 

applicant receives a waiver from the 

electronic application submission 

requirement. See Section IV of the 

General Section, ‘‘Application 

Submission and Receipt Procedures,’’

for information on applying online. The 

applications submitted electronically 

via www.grants.gov will be 

electronically downloaded and 

forwarded to the appropriate local HUD 

office. 

V. Application Review Information 

A. Criteria 

HUD Headquarters will use a rating 

process to select applications for the 

Section 202 Demonstration PreDevelopment Grant Program. HUD will 

award funding under the following 

process until all available funding has 

been exhausted. 

B. Review and Selection Process 

1. Application Review Process. HUD’s 

application review process will include, 

but is not limited to, an eligibility 

review of each predevelopment 

planning activity being proposed by the 

applicant, the reasonableness of the 

proposed cost for each activity, the 

reasonableness of the applicant’s 

proposed budget, and the ability of 

project Sponsors to expedite the 

development processing of projects from 

Section 202 Fund Reservation to Initial 

Closing within the 18-month time 

frame. All activities must be related to 

the development of the Section 202 

housing project selected under the FY 

2006 Section 202 Supportive Housing 

for the Elderly Program and be 

otherwise eligible activities under the 

Section 202 program. 

2. Review for Curable Deficiencies. A 

curable deficiency is a missing Exhibit 

or portion of an Exhibit that will not 

affect the eligibility of the applicant. 

The Exhibits identified by an asterisk (*) 

as threshold requirements must be dated 

on or before the application deadline 

date. Refer to the General Section of the 

SuperNOFA for additional information 

regarding procedures for corrections to 

deficient applications. HUD will screen 

all applications received by the 

application submission deadline for 

curable deficiencies. The relevant HUD 

Office will notify you in writing if your 

application is missing any of the 

exhibits or portions of exhibits, as listed 

in Section IV(B) of this NOFA, and you 

will be given 14 calendar days from the 

date of the HUD written notification to 

submit the information required to cure 

the noted deficiencies. 

3. Review for Threshold 

Requirements. All applications must 

meet the threshold requirements 

identified in the General Section of the 

FY 2006 SuperNOFA and in Section 

IV(B) and Section III(C)(2) of this 

program NOFA. Failure to meet any 

threshold item will render an 

application ineligible for funding 

consideration. Please note that Section 

III(C)(2) of the General Section of the FY 

2006 SuperNOFA, and the items 

identified by an asterisk (*) as listed in 

Section IV(B) and in Section III(C)(2) of 

this NOFA, are also threshold 

requirements and must be dated on or 

before the application deadline date. 

Failure to satisfy all threshold 

requirements at the time of submission 

will render the application in question 

as being nonresponsive to this NOFA 

and the application will be subject to no 

further review. See the General Section 

of the FY 2006 SuperNOFA for 

additional procedures for corrections to 

deficient applications. 

4. Technical Review. After an 

application has passed threshold 

review, HUD Multifamily Field Office 

staff will review it for compliance with 

the eligibility criteria set forth in this 

NOFA. However, HUD will not reject an 

application based on technical review 

without notifying the applicant of that 

rejection, the reason(s) for the rejection, 

and providing the applicant with an 

opportunity to appeal. The applicant 

will have 14 calendar days from the date 

of HUD’s written notice to appeal a 

technical rejection to the HUD office. 

The HUD office will make a 

determination on an appeal before 

making its selection of projects to be 

forwarded to HUD Headquarters. HUD 

field office staff will forward to 

Headquarters a listing of eligible 

applications that were received by the 

deadline date, met all eligibility criteria, 

proposed reasonable costs for eligible 

activities, and included all technical 

corrections by the designated deadline 

date. 

5. Selection Process. HUD 

Headquarters will select Section 202 

Demonstration Pre-Development Grant 

Program applications based on HUD 

Multifamily Program Centers’ rating of 

the respective FY 2006 Section 202 

program applications, beginning with 

the highest rated application 

nationwide. After this selection, HUD 

Headquarters will select the next 

highest rated application in another 

Program Center. Only one application 

will be selected per Multifamily 

Program Center. However, if there are 

no approvable applications in other 

Multifamily Program Centers, the 

process will begin again with the 

selection of the next highest rated 

application nationwide. More than one 

application may be selected per HUD 

Multifamily Program Center if there are 

no other approvable applications. 

This process will continue into a 

second round and subsequent round(s) 

until all approvable applications are 

selected using the available remaining 

funds. HUD Headquarters will fully 


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Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Notice 8577 

fund as many applications as allocated 

funds will allow. HUD Headquarters 

will review its selection results to 

ensure that no single entity (including 

affiliated entities) receives grant funding 

in excess of $800,000. Once an 

organization receives its maximum 

amount of grant funding, no other 

projects from that organization will be 

eligible for selection from the 

succeeding rounds. 

If there is a tie score between two or 

more applications, HUD will select the 

applicant with the highest score in 

Rating Factor 1 of the FY 2006 Section 

202 program application. If Rating 

Factor 1 is scored identically, the scores 

in Rating Factors 2, 3, and 4, of the FY 

2006 Section 202 program application 

will be compared in that order, until 

one of the applications received a higher 

score. If both applications still score the 

same, then the application that requests 

the least funding will be selected. 

6. Adjustments to Funding/Reduction 

of Requested Grant Amount. See 

Section II(D) of this program NOFA. 

VI. Award Administration Information 

A. Award Notices 

Following the congressional 

notification process, HUD will issue a 

press release announcing the selection 

of awards. Once such an announcement 

has been made, successful applicants 

will receive their selection letters and 

grant agreement via regular or overnight 

mail. The grant agreement is the legally 

binding document that establishes a 

relationship between HUD and the 

award recipient organization. Once 

properly executed, it authorizes the 

obligation and disbursement of funds. 

1. As a condition of receiving a grant 

under this Section 202 Demonstration 

Pre-Development Grant Program, 

Grantees must open a separate, noninterest-bearing account for the receipt 

and handling of these funds. 

2. All applicants that were not 

selected for funding will receive a nonselection letter. 

3. You may request a debriefing on 

your application in accordance with 

section VI(A) of the General Section of 

the FY 2006 SuperNOFA. The request 

must be made to the Director of 

Multifamily Housing at the HUD field 

office to which you sent your 

application. 

B. Administrative and National Policy 

Requirements 

The Transportation, Treasury, 

Housing and Urban Development, The 

Judiciary, The District of Columbia, and 

Independent Agencies Appropriations 

Act, 2006 (Pub. L. 109–115, approved 

November 30, 2005) requires HUD to 

obligate all Section 202 funds 

appropriated for FY 2006 by September 

30, 2009. Under 31 U.S.C. 1551, no 

funds can be disbursed from this 

account after September 30, 2014. 

Under this Demonstration PreDevelopment Grant Program, obligation 

of funds occurs upon execution of the 

Grant Agreement. 

C. Reporting 

Grantees must submit quarterly 

updates of the program outcome Logic 

Model (form HUD–96010) as well as 

quarterly SF–269, Financial Status 

Reports. In order for HUD to evaluate 

the effectiveness of this funding, each 

Logic Model must indicate the results 

achieved against the proposed output 

goal(s) and proposed outcome(s) that 

were stated in the FY 2006 Section 202 

Demonstration Pre-Development Grant 

Program application and agreed upon by 

HUD. HUD requires that funded 

recipients collect racial and ethnic 

beneficiary data. HUD has adopted the 

Office of Management and Budget’s 

Standards for Collection of Racial and 

Ethnic Data. In view of these 

requirements, you should use form 

HUD–27061, Racial and Ethnic Data 

Reporting form (and instructions for its 

use) found on http://www.HUDclips.org. 

D. Environmental Requirements 

The provision of assistance under this 

NOFA is categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321) and not subject to 

compliance action for related 

environmental authorities under 24 CFR 

50.19(b)(1), (3), (5), (8), and (16). 

E. Environmental Impact 

This NOFA does not direct, provide 

for assistance or loan and mortgage 

insurance for, or otherwise govern or 

regulate, real property acquisition, 

disposition, leasing, rehabilitation, 

alteration, demolition, or new 

construction, or establish, revise or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this NOFA is 

categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

VII. Agency Contacts 

A. For programmatic information, you 

may contact the appropriate local HUD 

office; or Brenda M. Butler at HUD 

Headquarters at (202) 708–3000 or via email at Brenda_Butler@hud.gov. Persons 

with hearing and speech impairments 

may access the above number via TTY 

by calling the toll-free Federal 

Information Relay Service at (800) 877–

8339. 

B. For technical assistance in 

downloading and submitting an 

application package through 

www.Grants.gov, contact the Grants.gov 

Help Desk at (800) 518–GRANTS or via 

e-mail at support@grants.gov. 

VIII. Other Information 

A. Section 102 of the HUD Reform Act 

(Documentation and Public Access 

Requirements) 

Section 102 of the Department of 

Housing and Urban Development 

Reform Act of 1989 (42 U.S.C. 3545) 

(HUD Reform Act) and the regulations 

codified at 24 CFR part 4, subpart A, 

contain a number of provisions that are 

designed to ensure greater 

accountability and integrity in the 

provision of certain types of assistance 

administered by HUD. On January 14, 

1992, HUD published a notice that also 

provides information on the 

implementation of Section 102 (57 FR 

1942). The documentation, public 

access, and disclosure requirements of 

Section 102 apply to assistance awarded 

under this NOFA, as follows: 

1. Documentation. HUD will ensure 

that documentation and other 

information regarding each application 

submitted pursuant to this NOFA are 

sufficient to indicate the basis upon 

which assistance was provided or 

denied. This material, including any 

letters of support, will be made 

available for public inspection for a 5- 

year period beginning not less than 30 

days after the award of the assistance. 

Material will be made available in 

accordance with the Freedom of 

Information Act (5 U.S.C. 552) and 

HUD’s implementing regulations (24 

CFR part 15). 

2. Disclosures. HUD will make 

available to the public, for 5 years, all 

applicant disclosure reports (form 

HUD–2880) submitted in connection 

with this NOFA. Update reports (also 

reported on form HUD–2880) will be 

made available along with the applicant 

disclosure reports, but in no case for a 

period of less than 3 years. All reports, 

both applicant disclosures and updates, 

will be made available in accordance 

with the Freedom of Information Act (5 

U.S.C. 552) and HUD’s implementing 

regulations (24 CFR part 15). 

3. Publication of Recipients of HUD 

Funding. HUD will publish a notice in 

the Federal Register to notify the public 

of all decisions made by HUD to 

provide: 


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8578 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Notice 

a. Assistance subject to Section 102(a) 

of the HUD Reform Act; and 

b. Assistance provided through grants 

or cooperative agreements on a 

discretionary (non-formula, nondemand) basis, but that is not provided 

on the basis of a competition. 

B. Section 103 of the HUD Reform Act 

HUD’s regulations implementing 

Section 103 of the Department of 

Housing and Urban Development 

Reform Act of 1989 (42 U.S.C. 3537a), 

codified at 24 CFR part 4, subpart B, 

apply to this funding competition. The 

regulations continue to apply until the 

announcement of the selection of 

successful applicants. HUD employees 

involved in the review of applications 

and in the making of funding decisions 

are limited by the regulations in 

providing advance information to any 

person (other than an authorized 

employee of HUD) concerning funding 

decisions or from otherwise giving any 

applicant an unfair competitive 

advantage. Persons who apply for 

assistance in this competition should 

confine their inquiries to the subject 

areas permitted under 24 CFR part 4. 

Applicants or employees who have 

ethics-related questions should contact 

the HUD Ethics Law Division at (202) 

708–3815. (This is not a toll-free 

number.) HUD employees who have 

specific program questions should 

contact the appropriate field office 

counsel or Headquarters counsel for the 

program to which the question pertains. 

C. Paperwork Reduction Act Statement 

The information collection 

requirements contained in this 

document are currently approved by the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3501–3520) and 

assigned OMB control number 2502–

0267. In accordance with the Paperwork 

Reduction Act, HUD may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection displays a 

currently valid OMB control number. 

Public reporting burden for the 

collection of information is estimated to 

average 4 hours per annum per 

respondent for the application and grant 

administration. This includes the time 

for collecting, reviewing, and reporting 

the data for the application, semi-annual 

reports, and final report. The 

information will be used for grantee 

selection and monitoring the 

administration of funds. Response to 

this request for information is required 

in order to receive the benefits to be 

derived. 

Dated: February 16, 2007. 

Brian D. Montgomery, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. E7–3142 Filed 2–23–07; 8:45 am] 

BILLING CODE 4210–67–P 


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